Klondex Mines Ltd. (TSX:KDX)(OTCQX:KLNDF) today provides an update on recent underground infill and exploration drilling from its Fire Creek Project near Elko, Nevada. A total of 21 holes have been drilled to the east of the main decline in 2014 from the Joyce drifts (5400 and 5420 South), Spiral 2, and Diamond Drill Station (DDS) 6 (See FIGURE 1).

A total of eight core holes were drilled east from multiple drill stations located in the Joyce 5400 South drift to test the southern extension of the Vonnie Vein. Drilling intersected the Vonnie Vein in seven of the eight drill holes. These holes suggest mineralization continues along the Vonnie Vein another 45.7 m (150 ft) to the south, and at depth 15.2 m (50 ft). Additional 2014 drilling is scheduled to the south of these intercepts to continue defining the southern extension of the Vonnie Vein.

Drilling east from DDS-6 continues to suggest continuity of mineralization along the Joyce Vein and the Vonnie Vein. The drilling intercepted significant mineralized material in seven of the eight drill holes. These drill holes infilled an area 45.7 m (150 ft) along strike and 53.3 m (175 ft) of vertical extent on the Joyce Vein. Additionally, the Joyce Vein widths demonstrate the potential to introduce long hole stoping, which could result in lower costs and more efficiency.

Brent Kristof, Klondex Chief Operating Officer, stated, "These drill results continue to unlock value at Fire Creek. The 2014 drilling program is intended to enhance our understanding of the epithermal mineralization while raising confidence in the resource categories. Fire Creek continues to add value to the Company with its high grades. Excavating an additional level provides a top cut access that may be used to set up long hole stoping as well as providing additional drilling platforms for exploration drilling."

Hole ID

Drill Stn

Azi

Dip

TD

From

To

Lth

From

To

Lth

Au Grade

Ag Grade

(m)

(ft)

(m)

(ft)

(g/t)

(oz/st)

(g/t)

(oz/st)

FC14113U

DDS-6

106

-57

115.8

380

No Significant Results

FC14114U

DDS 6

106

-38

121.0

397.0

52.3

53.6

1.34

171.6

176.0

4.4

4.27

0.125

1.7

0.050

and

57.9

61.3

3.35

190.0

201.0

11.0

18.43

0.538

13.1

0.382

Incl.

57.9

58.6

0.67

190.0

192.2

2.2

66.80

1.949

18.6

0.543

Incl.

58.6

59.4

0.85

192.2

195

2.8

5.79

0.169

11.2

0.327

Incl.

59.4

59.7

0.27

195.0

195.9

0.9

12.95

0.378

18.0

0.525

Incl.

59.7

61.3

1.55

195.9

201.0

5.1

5.47

0.160

10.9

0.318

And

80.5

80.9

0.40

264.0

265.3

1.3

8.59

0.251

7.3

0.213

And

95.1

95.9

0.82

312.0

314.7

2.7

4.42

0.129

3.7

0.108

FCU-0004

DDS 6

69

-39

113.4

372.0

29.6

31.1

1.52

97.0

102.0

5.0

44.50

1.298

6.1

0.178

And

42.2

43.7

1.49

138.5

143.4

4.9

40.01

1.167

38.4

1.119

Incl.

42.2

43.1

0.91

138.5

141.5

3.0

59.30

1.730

54.0

1.575

Incl.

43.1

43.4

0.30

141.5

142.5

1.0

7.19

0.210

8.0

0.233

Incl.

43.4

43.7

0.27

142.5

143.4

0.9

12.20

0.356

20.0

0.583

And

44.8

45.5

0.67

147.0

149.2

2.2

4.01

0.117

9.0

0.263

And

79.9

81.4

1.52

262.0

267

5.0

5.07

0.148

2.0

0.058

FCU-0005

DDS 6

85

-48

122.5

402

54.3

54.4

0.12

178.0

178.4

0.4

42.2

1.231

26.8

0.782

And

57.6

58.5

0.91

189.0

192.0

3.0

8.99

0.262

5.4

0.158

FCU-0006

DDS 6

89

-38

145.7

478

45.4

46.6

1.22

149.0

153.0

4.0

7.38

0.215

6.9

0.200

Incl.

45.4

46.0

0.61

149.0

151.0

2.0

11.50

0.335

6.3

0.184

Incl.

46.0

46.6

0.61

151.0

153.0

2.0

3.25

0.095

7.4

0.216

And

47.2

48.8

1.58

155.0

160.2

5.2

11.56

0.337

15.5

0.453

Incl.

47.2

48.0

0.79

155.0

157.6

2.6

5.33

0.155

10.2

0.298

Incl.

48.0

48.6

0.52

157.6

159.3

1.7

8.56

0.250

11.3

0.330

Incl.

48.6

48.8

0.27

159.3

160.2

0.9

35.20

1.027

38.9

1.135

FCU-0008

DDS 6

64.5

10

93.9

308

4.0

4.2

0.24

13.0

13.8

0.8

96.60

2.818

49.0

1.429

And

10.8

11.0

0.15

35.5

36.0

0.5

14.45

0.422

13.0

0.379

And

32.4

38.6

6.16

106.3

126.5

20.2

12.80

0.373

12.1

0.353

Incl.

32.4

32.6

0.15

106.3

106.8

0.5

14.00

0.408

4.1

0.119

Incl.

36.4

36.6

0.27

119.3

120.2

0.9

27.60

0.805

48.0

1.400

Incl.

36.6

37.8

1.19

120.2

124.1

3.9

1.91

0.056

7.0

0.204

Incl.

37.8

38.0

0.21

124.1

124.8

0.7

247.00

7.205

186.0

5.426

Incl.

38.9

38.6

0.52

124.8

126.5

1.7

3.85

0.112

8.0

0.233

And

78.9

79.6

0.61

259.0

261.0

2.0

4.88

0.142

10.3

0.299

FCU-0009

DDS 6

64.5

20

70.1

230

4.3

4.6

0.34

14.1

15.2

1.1

30.6

0.893

19.0

0.554

And

11.3

11.6

0.30

37.0

38.0

1.0

4.65

0.136

5.5

0.160

And

14.0

15.1

1.10

46.0

49.6

3.6

5.96

0.174

10.0

0.292

Incl.

14.0

14.6

0.61

46.0

48.0

2.0

1.13

0.033

6.0

0.175

Incl.

14.6

15.1

0.49

48.0

49.6

1.6

12.0

0.350

15.0

0.438

And

17.1

19.5

2.44

56.0

64.0

8.0

4.09

0.119

8.8

0.256

Incl.

17.1

17.7

0.61

56.0

58.0

2.0

2.37

0.069

6.0

0.175

Incl.

17.7

18.4

0.76

58.0

60.5

2.5

3.36

0.098

8.0

0.233

Incl.

18.4

19.0

0.52

60.5

62.2

1.7

4.26

0.124

13.0

0.379

Incl.

19.0

19.5

0.55

62.2

64.0

1.8

6.84

0.200

9.0

0.263

And

24.9

25.5

0.58

81.6

83.5

1.9

4.37

0.127

6.0

0.175

And

36.3

37.5

1.22

119.0

123.0

4.0

8.83

0.258

16.1

0.470

Incl.

36.3

36.7

0.40

119.0

120.3

1.3

25.0

0.729

35.0

1.021

Incl.

36.7

37.5

0.82

120.3

123.0

2.7

1.05

0.031

7.0

0.204

FCU-0029

DDS 6

82

10

95.9

314.5

17.3

17.7

0.37

56.8

58.0

1.2

948.00

27.653

409.0

11.931

And

28.3

34.4

6.1

93.0

113.0

20.0

5.81

0.169

1.8

0.054

Incl.

28.3

29.9

1.52

93.0

98.0

5.0

3.43

0.100

3.9

0.114

Incl.

29.9

31.4

1.52

98.0

103.0

5.0

6.13

0.179

1.3

0.038

Incl.

31.4

32.9

1.52

103.0

108.0

5.0

5.69

0.166

0.3

0.007

Incl.

32.9

34.4

1.52

108.0

113.0

5.0

7.99

0.233

1.9

0.055

And

36.0

38.4

2.47

118.0

126.1

8.1

30.41

0.887

25.2

0.735

Incl.

36.0

37.1

1.16

118.0

121.8

3.8

4.47

0.13

2.5

0.073

Incl.

37.1

37.4

0.24

121.8

122.6

0.8

36.6

1.068

51.0

1.488

Incl.

37.6

37.7

0.15

123.2

123.7

0.5

26.6

0.776

34.0

0.992

Incl.

37.7

38.4

0.73

123.7

126.1

2.4

77.80

2.269

57.0

1.663

And

72.2

72.5

0.37

236.8

238.0

1.2

21.70

0.633

14.4

0.420

FCU-0047

Joyce South Drift

77

-30

57.9

190

24.5

24.8

0.30

80.5

81.5

1.0

439.00

12.806

347.0

10.122

And

31.6

31.8

0.21

103.7

104.4

0.7

5.41

0.158

3.7

0.108

FCU-0048

Joyce South Drift

75

-16

57.9

190

22.2

22.3

0.12

72.8

73.2

0.4

256.00

7.468

189.0

5.513

And

25.9

26.6

0.67

85.0

87.2

2.2

15.56

0.454

13.9

0.406

Incl.

25.9

26.2

0.30

85.0

86.0

1.0

7.84

0.229

7.0

0.204

Incl.

26.2

26.6

0.37

86.0

87.2

1.2

22.0

0.642

19.7

0.575

FCU-0049

Joyce South Drift

75

-40

73.2

240

26.3

27.4

1.13

86.3

90.0

3.7

158.69

4.629

122.4

3.573

Incl.

26.3

26.7

0.40

86.3

87.6

1.3

448.00

13.068

346.0

10.093

Incl.

26.7

27.4

0.73

87.6

90.0

2.4

1.99

0.058

1.4

0.041

FCU-0050

Joyce South Drift

102

-36

76.2

250

24.6

25.3

0.70

80.7

83.0

2.3

350.00

10.210

218.0

6.359

And

27.8

29.1

1.31

91.2

95.5

4.3

12.47

0.364

12.0

0.350

Incl.

27.8

28.3

0.55

91.2

93.0

1.8

16.6

0.484

18.0

0.525

Incl.

28.3

28.5

0.18

93.0

93.6

0.6

12.25

0.357

13.0

0.379

Incl.

28.5

29.1

0.58

93.6

95.5

1.9

8.62

0.251

6.0

0.175

FCU-0051

Joyce South Drift

93

3

57.9

190

40.1

41.1

1.10

131.4

135.0

3.6

5.75

0.168

5.6

0.163

Incl.

40.1

40.6

0.52

131.4

133.1

1.7

5.51

0.161

7.9

0.230

Incl.

40.6

41.1

0.58

133.1

135.0

1.9

5.96

0.174

3.5

0.102

FCU-0053

Joyce South Drift

No Significant Results

FCU-0054

Joyce South Drift

114

-7

76.2

250

6.3

6.6

0.27

20.8

21.7

0.9

3.55

0.104

2.5

0.073

And

19.8

20.6

0.82

65.0

67.7

2.7

5.12

0.149

7.7

0.224

Incl.

19.8

20.4

0.58

65.0

66.9

1.9

1.78

0.052

2.5

0.073

Incl.

20.4

20.6

0.24

66.9

67.7

0.8

13.05

0.381

20.0

0.583

FCU-0055

Joyce South Drift

95

2

77.7

255

18.0

18.3

0.3

59.0

60.0

1.0

4.66

0.136

30.0

0.875

FCU-0087

Joyce 5420 Drift

66

-2

45.7

150

13.2

13.7

0.52

43.3

45.0

1.7

10.25

0.299

9.5

0.277

And

20.8

21.1

0.27

68.2

69.1

0.9

7.12

0.208

5.4

0.158

And

30.5

32.0

1.52

100.0

105.0

5.0

6.83

0.199

6.2

0.181

And

41.0

42.0

1.01

134.5

137.8

3.3

4.23

0.123

7.8

0.228

FCU-0088

Joyce 5420 Drift

No Significant Results

FCU-0094

Spiral 2

62

-18

45.7

150

39.3

39.8

0.52

128.9

130.6

1.7

4.16

0.121

3.2

0.093

FCU-0095

Spiral 2

65

33

45.7

150

19.7

20.3

0.64

64.5

66.6

2.1

10.30

0.300

2.5

0.073

And

30.1

31.2

1.04

98.8

102.2

3.4

23.50

0.685

28.0

0.817

FCU-0096

Spiral 2

No Significant Results

Note: True widths are not yet known.

The technical information contained in this press release has been reviewed and approved by Mark Odell of Practical Mining LLC, an Independent Qualified Person (Nevada PE 13708 and SME 2402150) for the purposes of National Instrument 43-101.

Assays were performed by ALS Chemex of Elko, Nevada (an independent laboratory), as directed under the supervision of Klondex staff.

Klondex Mines is focused on the exploration, development and production of its high quality gold and silver projects. The Company is operating an ongoing bulk sampling program at its Fire Creek gold project located in north central Nevada. Fire Creek is in a mining-friendly jurisdiction, with onsite power and mining infrastructure, and near major producers. Midas, Klondex's newly acquired operating mine and milling facility are located ~100 miles north of Fire Creek.

A production decision at the Midas mine was made by prior owners of the mine, prior to the completion of the acquisition of the Midas mine by Klondex. To the knowledge of Klondex, this production decision was not based on a feasibility study of mineral reserves demonstrating economic and technical viabilityprepared in accordance with NI 43-101 but was based on internal studies conducted by the prior owner of the mine. Klondex has no reason to believe that the data on which such studies were based or that the results of such studies are unreliable. However, readers are cautioned that there is increased uncertainty and higher risk of economic and technical failure associated with such production decisions.

This news release contains certain information that may constitute forward-looking information under applicable Canadian securities legislation, including but not limited to information about the timing and success of exploration drilling activities. This forward-looking information entails various risks and uncertainties that are based on current expectations, and actual results may differ materially from those contained in such information. These uncertainties and risks include, but are not limited to, the strength of the global economy; the price of gold; operational, funding and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; the degree to which factors which would make a mineral deposit commercially viable are present; the risks and hazards associated with underground operations; and the ability of Klondex to fund its substantial capital requirements and operations. Risks and uncertainties about the Company's business are more fully discussed in the Company's disclosure materials filed with the securities regulatory authorities in Canada and available at www.sedar.com. Readers are urged to read these materials. Klondex assumes no obligation to update any forward-looking information or to update the reasons why actual results could differ from such information unless required by law.